VE

Veeva Systems Inc. stock research

Jan 31, 2025

FY2025 Q4

Veeva Systems (VEEV) Gross Margin — Quarter Ended Jan 31, 2025

Revenue, gross profit, and cost of revenue all increased. Gross margin weakened slightly versus the prior quarter but improved compared to the same quarter one year earlier.

Gross margin takeaway

Quarter ended Jan 31, 2025 · FY2025 Q4

Revenue, gross profit, and cost of revenue all increased. Gross margin weakened slightly versus the prior quarter but improved compared to the same quarter one year earlier.

  • The relationship among revenue, gross profit, and cost of revenue shows that gross profit grew slower than revenue sequentially, leading to a slight margin decline, while year-over-year gross profit grew faster than cost of revenue, supporting margin expansion.
  • Compared to the immediately preceding quarter, gross margin was slightly lower. Compared to the same quarter one year earlier, gross margin was higher, reflecting an improved relationship between gross profit and revenue.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

74.9%

Gross profit

$539.9M

Revenue

$720.9M

Cost of revenue

$181.0M

Quarter-over-quarter change

-0.2 pts

Year-over-year change

+2.5 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Apr 30, 2024$650.3M$476.5M$173.9M73.3%
Jul 31, 2024$676.2M$505.8M$170.4M74.8%
Oct 31, 2024$699.2M$524.8M$174.4M75.1%
Jan 31, 2025$720.9M$539.9M$181.0M74.9%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Oct 31, 2024

-0.2 pts

Year-over-year change

Jan 31, 2024

+2.5 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The relationship among revenue, gross profit, and cost of revenue shows that gross profit grew slower than revenue sequentially, leading to a slight margin decline, while year-over-year gross profit grew faster than cost of revenue, supporting margin expansion.

Compared to the immediately preceding quarter, gross margin was slightly lower. Compared to the same quarter one year earlier, gross margin was higher, reflecting an improved relationship between gross profit and revenue.

Monitor the trajectory of gross margin relative to sequential revenue growth, as the slight weakening suggests ongoing cost absorption pressure.